Nepal Electricity Authority’s Profit Declines by NPR 387 Crore

Despite an increase in revenue, the Nepal Electricity Authority’s pre-tax profit for the fiscal year 2082/83 decreased by 43 percent compared to the previous year, limiting it to NPR 5.04 billion. Executive Director Dhirajay Kumar Shrestha attributed the profit decline to the rise in foreign exchange rates, increased depreciation, and higher interest expenses. In the past fiscal year, the Authority generated a total income of NPR 166 billion, including NPR 29.31 billion from electricity exports.

Although revenue rose, the profit saw a dip. The pre-tax profit for the fiscal year 2082/83 was NPR 5.04 billion, which is about 43 percent or NPR 387 crore less than the previous year’s NPR 8.91 billion. According to Executive Director Dhirajay Kumar Shrestha, the Authority earned a total of NPR 166 billion from electricity sales and other sources during this period.

Income from electricity sales increased by 18.20 percent compared to the previous year, reaching NPR 148.62 billion. The Authority cited overall operational improvements, reductions in electricity leakage, and growth in electricity exports as key reasons for the revenue increase. Additionally, the total operating profit grew by 7.28 percent over the prior year.

The rise in foreign exchange rates caused the Authority’s liabilities to grow by 272.86 percent compared to the previous year, amounting to NPR 1.151 billion. Increased depreciation and interest expenses further contributed to the decline in net profit. Furthermore, provisions made for impairment losses also impacted profitability, resulting in a lower profit for the year. By the end of fiscal year 2082/83, Nepal’s total installed electricity generation capacity reached 4,120 megawatts.

In the past year alone, 529 megawatts were added to the national transmission system. The Authority reported a 3.85 percent increase in electricity customers compared to the previous year, reaching a total of 5.927 million customers. Among them, domestic customers constitute 90.64 percent, industrial customers 1.20 percent, and other customers 8.16 percent. Although internal electricity consumption rose by 9.27 percent, electricity leakage slightly decreased from 12.26 percent last year to 12.16 percent this year. Nepal spent NPR 1.056 billion on electricity imports during the last fiscal year, while revenue from electricity exports surged by 68 percent to NPR 2.931 billion compared to the previous year.